Santam Limited. JSE: SNT

Background of Santam

Santam Limited is one of South Africa’s leading insurance companies, commanding a market share of more than 20%. The group and its subsidiaries predominantly focus on short-term insurance products for sale to commercial clients and individuals. Branded business units include Santam Commercial and Personal, Santam Specialist and reinsurance provider Santam re. Wholly owned subsidiaries include MiWay, Mirabilis, Echelon and Centriq.

The group offers a diverse portfolio of products and services in southern Africa and internationally, through 2700 intermediaries and direct channels, covering more than 1 million clients. The group has a strong history of attracting blue-chip corporate clients, with the company today insuring 86 of the top 100 companies listed on the Johannesburg Stock Exchange (JSE).

Santam shares are listed on the JSE with a market cap of R27 billion, and the group employs over 4 000 people. Santam share price has remained steady on the live online stocks chart.

Santam Shares Growth Driver

Santam prides itself on efficient capital management and stable dividends policies which have enabled the group to deliver average annual return on capital of more than 25%. The group’s geographical footprint, brand strength, scale, business diversity and distribution networks have driven strong performance over the years. The group’s established presence in Africa has been further boosted with an agreement to buy a 30% stake in Morocco-based company Saham Finances, which has a presence in 26 countries in North Africa and the Middle East, for $400 million.

Acquisitive purchase opportunities are limited in South Africa due to the group’s dominant position, but organic growth will remain a key focus area driven by intermediary networks, integration opportunities and continued development of the Santam district distribution channel.

Despite constrained market conditions for financial services companies, Santam achieved respectable growth in 2015, with full-year profits rising from R1.6 billion to R2.4 billion. This was driven by solid premiums growth, higher investment income and an increase in business outside South Africa.

Interim results for the firsts six months of 2016 reflected costs from the Saham buy-in, as well as continued depressed market conditions. Profits decreased to R762 million compared to R1 billion for the corresponding 2015 period. Investment income was significantly lower compared to 2015, falling to R555 million from R767 million, due to foreign exchange currency losses. Premiums decreased due to increased consumer pressure in South Africa, but the focus on international diversification continued to bear fruit, with premiums from the rest of Africa, China, India and Southeast Asia rising to R1.263 billion million from R962 million.

Santam has also announced that it buy 100% of the share capital of innovative specialist insurance structuring business RMB-SI Investments.

Santam Group Investor Tip

Trading conditions in the South African insurance industry remain very competitive, but Santam has established itself as a dominant player in the market. The group will remain focused on a combination of growth in South Africa and increased international diversification. Santam share price has been a steady performer on the JSE, and Santam shares should yield long-term profits for investors who buy them.

Santam Major Shareholders

Sanlam, Government Employees Pension Fund.

Sector

Financials

Industry

Insurance

Sub industry

P&C Insurance

How to buy Santam Group Shares

Santam : How to buy Santam Group Shares Online

We have made it simple to buy JSE listed firm shares online. The easiest way to buy Santam Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Santam Group and assist you with the setup and management of your stock portfolio account.

Here are the steps you must follow to Buy / Purchase Santam Group shares with utmost confidence:

Start by Filling in the BUY THIS SHARE form.

Insert your name, email, telephone number and monthly remuneration.

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Click the “ INVEST NOW” button

Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.

Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)

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